Overtime rule blocked in federal court
- A Texas judge this week ruled against a federal rule change from the Department of Labor, which could have raised earning potential for some campus staff members to $47,000 from about $23,000, according to the Chronicle.
- The Dec. 1 start date for the new rule, and the stress for schools to identify eligible staff members and to make sudden budget adjustments, served as the impetus for the decision, which renders the federal guidance out of effect nationally.
- Observers expect that the decision will be left to the review and action of the new presidential administration under Donald Trump.
College executives can breathe a sigh of relief that budgets, already stretched thin by drops in state and federal appropriations, will not have to worry about additional payouts under new overtime rules. And, it is possible that under a Trump administration, the issue will likely not be revisited.
But schools should consider the business model for auxiliary services and athletic operations, the areas where the rule would have caused the greatest impact, as opportunities to reconfigure donor appeals and corporate asks for support. Now that these areas are free of forced budget adjustments, there may be ways to engage financial support for personnel and initiatives that help to improve the college experience outside of the classroom.
- The Chronicle of Higher Education Federal judge blocks Obama's overtime-pay rule